Hey CMOs, we feel you – the pressure to perform and achieve targets can be overwhelming, especially for marketers in larger organisations. But fear not, because performance-driven marketing is here to save the day. With its ability to drive short and long-term strategic returns, it’s no wonder why it’s becoming the go-to strategy. So, let’s dive in and explore how you can effectively communicate those business returns while keeping up with the competition.
First things first, let’s address the elephant in the room: the pressure to perform. We get it – the C-suite is expecting results, and they want them yesterday. It’s not surprising that half of the marketers surveyed by our friends at Marketing Week mentioned pressure from senior leadership as a driving force behind their focus on performance marketing. But here’s the good news: performance-driven marketing delivers tangible outcomes that are easy to communicate.
Performance marketing demonstrates short-term wins…
When compared to brand marketing, performance-driven marketing shines in terms of short-term returns. Short-term results are often what your C-suite is most interested in. They want to see that their investments are paying off and that the bottom line is improving. Performance marketing allows you to demonstrate those quick wins that boost revenue and give an immediate sense of accomplishment.
… But it’s also there to underpin long-term strategic planning
Performance marketing offers the ability to quickly adapt and optimise campaigns in response to real-time data and market dynamics. CMOs can leverage performance metrics to identify underperforming campaigns, channels, or segments and make necessary adjustments for long-term results. The agility provided by performance marketing allows CMOs to respond promptly to changing market conditions and consumer preferences, staying ahead of the competition and meeting boardroom expectations.
Application of performance metrics
Performance marketing provides valuable data and insights that inform strategic decision-making. Through the use of analytics and metrics, CMOs can gain a deep understanding of customer behaviour, preferences, and market trends. This data-driven approach allows CMOs to make informed decisions about target audiences, campaign optimisation, budget allocation, and resource allocation. Strategic decision-making based on performance data ensures that marketing efforts align with broader business goals and objectives.
How to communicate your success
One of the reasons performance-driven marketing is gaining traction is because it’s easy to communicate. As a CMO, you know that effectively conveying the value of your marketing efforts is crucial for buy-in and support from senior leadership. Performance-driven marketing provides clear metrics and measurable results that are easily understood by both marketing and non-marketing stakeholders. It’s a language everyone can speak, making it easier to showcase the impact of your strategies on business outcomes.
Of course, it’s not just about meeting targets and communicating results. Beating competitors to the sale is another key driver behind the increased focus on performance marketing. In today’s highly competitive market, being able to swiftly capture customers’ attention and convert them into buyers is essential. Performance-driven marketing empowers you to identify the most effective tactics, optimise campaigns in real-time, and stay ahead of the competition.
So, how can you effectively communicate those business returns derived from performance-driven marketing?
- Get your data in order: use stats to tell a compelling story of how your performance marketing efforts have contributed to revenue growth, customer acquisition, or increased conversion rates. Visualise your data through clear and concise reports that highlight the impact on the bottom line.
- Tie your results to business goals: make sure you’re speaking the language of the boardroom. That means revenue targets, market share growth, or customer retention goals, not clicks and shares.
- Link back to your overall business strategy: performance-based marketing underpins everything from the quick returns gained from Paid Media campaigns to the increase in NPS scores gained from longer-term branding efforts.
- Demonstrate how the customer journey has enhanced the customer experience and accelerated their path to purchase.
- Showcase how targeted campaigns, personalised messaging, and optimised touchpoints have created a seamless and engaging journey for your customers, making for more lucrative longer standing relationships, stronger advocacy and ultimately a better ROI beyond your initial performance dashboard.
- Shout about your success: nothing speaks louder than success stories and testimonials. Highlight specific case studies where performance-driven marketing has delivered impressive results, such as increased sales, higher ROI, or improved customer satisfaction. These stories provide tangible proof of the effectiveness of your strategies.
- Keep the finance team on-side, so that you can ensure that the financial impact of your performance-driven marketing efforts is accurately captured and translated into meaningful metrics. Collaborate to develop a shared understanding of how marketing investments translate into measurable returns.
Remember, while the pressure to perform is real, performance-driven marketing is your secret weapon to meet targets, beat the competition, and impress the C-suite. So, go ahead and communicate those business returns with confidence and conviction. You’ve got this.
If you need support with your performance marketing from an agency that ties in strategy with business goals, speak to us today.